Kenmare Resources Swings To Profit On "Record" Production Volumes

14th Mar 2018 13:16

LONDON (Alliance News) - Kenmare Resources PLC on Wednesday said it returned to profitability following product price increases and set new records for production and shipments.

The titanium minerals and zircon producer operating the Moma mine in northern Mozambique posted a pretax profit of USD18.5 million for 2017, reversing USD2.2 million loss reported the year before as revenue rose 47% to USD208.3 million from USD141.5 million. A better margin further supported the gross profit of USD51.7 million, having booked a USD2.5 million loss the year before.

Finance costs, following a reduction in debt to USD34.1 million from USD44.8 million over the year, narrowed to USD6.8 million from USD28.0 million.

Kenmare said it achieved record annual production of ilmenite and zircon. Output of ilmenite rose 11% year-on-year to 998,200 tonnes compared with 903,300 tonnes, while zircon production grew 9% to 74,000 tonnes from 68,200 tonnes the year before. Total shipments of finished products rose 2% setting an annual record of 1.0 million tonnes shipped.

Kenmare Managing Director Michael Carvill said: "The zircon market remains tightly supplied, with strong price increases throughout 2017 and significant further rises already in 2018. Zircon prices remain far below the previous peaks achieved in 2012, though tight supply conditions are expected to continue and may lead to some thrifting and substitution."

Kenmare shares were down 3.3% at 241.78 pence per share on Wednesday.

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